TMI Blog2021 (4) TMI 1015X X X X Extracts X X X X X X X X Extracts X X X X ..... ot form part of facilitation charge. The interest transactions were duly accounted for by the assessee. As per the audited accounts of HPLCL, income from facilitation charges was disclosed as ₹ 137,86,20,277/-. ₹ 4,11,39,797/- was an amount of debit notes on fuel savings which was not considered by HPL, while deducted TDS. Further, HPLCL had to pay HPL corporate tax to the tune of ₹ 38.67 crores. This was considered by HPL in the next phase of 2009. Thus these factors are taken into consideration by the ld. CIT(A). Enhancing the income of the assessee by an amount of ₹ 11.40 crores both are normal provisions as well as u/s 115JB of the Act is without proper analysis of the facts and figures is wrong. Hence, we delete this addition to the extent confirmed by the ld. CIT(A). Disallowance of prior period expenses - Addition on reimbursement of expenses paid to Nuovo Pignone on the ground that the invoices do not pertain to March, 2006 and they are prior period expenses - HELD THAT:- We find that certain invoices were raised on the assessee during 06.03.2006 and 16.03.2006. The issue is whether these are prior period expenditure. The assessee is a publ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under these circumstances that finding of fact has become final. The ld. CIT(A) has in the impugned order followed the order and propositions laid down by his predecessor for the AY 2006-07. We find no infirmity in the same. Hence, we uphold the order of the ld. CIT(A) and dismiss ground no. 4 of the Revenue. - I.T.A. No. 2349/Kol/2019 I.T.A. No. 2281/Kol/2019 - - - Dated:- 21-4-2021 - Sri J. Sudhakar Reddy , Accountant Member And Sri Aby T. Varkey , Judicial Member Sh. Imokaba Jamir , CIT , appeared on behalf of the Revenue Sh. Harakamal Chakravorty , A/R , appeared on behalf of the Assessee ORDER Per J. Sudhakar Reddy , AM : These are cross appeals directed against the order of the Learned Commissioner of Income Tax (Appeals)-11, Kolkata [hereinafter the CIT(A) ], passed u/s. 250 of the Income Tax Act, 1961 (the Act ), dated 31.07.2019 for the Assessment Year 2007-08. 2. The assessee is a public sector undertaking M/s. HPL Cogeneration Ltd. (hereinafter HPLCL ). It filed its return of income u/s 139 of the Act for the AY 2007-08 on 30.10.2007. It declared book profit u/s 115JB of the Act. 2.1. HPLCL was amalgamated with Haldia Petrochemicals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is noted that the Id. AO made an incorrect statement that the appellant had failed to explain the difference. 5.3. As for the difference between the figures in the books of the appellant and that derived from the TDS made on payments made to the appellant, it was explained by the Id. AR that there were certain disputes related to refund of Corporation Tax which the appellant was supposed to refund to HPL. The dispute was sorted out towards the end of March 2007 and the appellant issued a credit note to HPL as such the amount payable by HPL to the appellant got reduced by ₹ 34,55,60,203. But by the time the dispute was settled, TDS had already been deducted by HPL and deposited in the Government Account. I find that there is a note prepared by HPL on amounts receivable from and payable to the appellant. The note enlists the following: Corporate Tax refundable by the appellant to HPL : ₹ 38.67 crores Interest on Corporate tax refundable by the appellant to HPL : ₹ 4.20 crore Interest on delayed payment payable by HPL to the appellant : ₹ 19.71 crore Net amount payable the appellant to HPL on 31.03.2007 : ₹ 23.15 cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions were duly accounted for by the assessee. As per the audited accounts of HPLCL, income from facilitation charges was disclosed as ₹ 137,86,20,277/-. ₹ 4,11,39,797/- was an amount of debit notes on fuel savings which was not considered by HPL, while deducted TDS. Further, HPLCL had to pay HPL corporate tax to the tune of ₹ 38.67 crores. This was considered by HPL in the next phase of 2009. Thus these factors are taken into consideration by the ld. CIT(A). Enhancing the income of the assessee by an amount of ₹ 11.40 crores both are normal provisions as well as u/s 115JB of the Act is without proper analysis of the facts and figures is wrong. Hence, we delete this addition to the extent confirmed by the ld. CIT(A). 4.4. Ground no. 2 of the assessee s appeal is against the ld. CIT(A) confirming part addition on reimbursement of expenses paid to Nuovo Pignone on the ground that the invoices do not pertain to March, 2006 and they are prior period expenses. 4.5. The assessee has during the year paid an amount of ₹ 36,62,848/- to Nuovo Pignone as reimbursement of expenses. The AO disallowed this expenditure u/s 40(a)(i) of the Act, for the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e received and approved in the next financial year. Thus the disallowance as confirmed by the ld. CIT(A) is hereby deleted and this ground is allowed. 5. Now we take up the Revenue appeal in I.T.A. No. 2349/Kol/2019. There is a delay of 04 days in filing of this appeal. After perusing the condonation petition, we condone the delay and admit this appeal. 5.1. Grounds of the appeal are as follows: (a) That on the facts and circumstances of the case, the Ld. CIT(A) has erred in law as well as in facts in considering the interest income ₹ 3,60,90,793/- as income from business and profession instead of income from other sources . (b) That on the facts and circumstances, the Ld. CIT(A) has erred in law as well as in facts allowing an amount of ₹ 23,15,00,000/- out of ₹ 34,55,60,203/- towards difference between income shown as facilitation charges shown in the income tax return and income. shown in TDS certificate and also allowing the same in computing book profit u/s 115JB. (c) That on the facts and circumstances, the Ld. CIT(A) has erred in law as well as in facts allowing an amount of ₹ 13,05,038/- out of ₹ 36,62,848/- u/s 40(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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